Question

Jp Ull Apnl 23, 2018, Bailey purchased a luxury automobile (under 6,000 lbs) for $25,000. The car is used 70% for business and 30% for personal use. What is the cost recovery deduction for 2018 assuming the 100% bonus was taken? 27. (4 pts): The Johnson's had AGI in 2018 of $100,000 and they had the following charitable contributions: SHOW ALL WORK Cash: Church Red Cross United Way $29,000 1,500 3,500 Long-term Property: Church FMV 30,000 Cost 13,000 Determine the allowable charitable deduction for 2018.

Answer 1

Ans: AGI= 100,000:

According to law, we can provide mixed donations comprising of both cash and assets i.e. 50% of the AGI limitation"

Now deductions are as follows i.e. in cash and assets

For cash=>

Church:$29,000

Red cross=$1500

United way=$3500

Total= 34000

For assets= 30,000

Total deduction= $64,000

If a person is not able to use Entire donation in a current year then he can forward its for next 5 years which remain unused in that year;

Total deduction for 2018 is $50,000